Your marketing plan addresses a variety of external factors that determine how consumers will view and accept your product or service. Solving that piece of the puzzle isn’t the only requirement for a profitable business, however. If consumers are clamoring for what you sell but you can’t deliver it efficiently, you’ll lose opportunities to grow, expand, maximize your products and even keep your doors open. Knowing what internal aspects of your operation to keep on top of will help you run the most profitable business possible.

Personnel

No matter what policies and procedures you implement to build a strong organization, people must manage them. The most critical internal factor that affects how your business performs is your people. Create a long-term organization chart to help you build the most efficient staff. Use a human resources professional to help you attract, hire and retain employees. Provide ongoing training, including management, communications and leadership seminars for your managers and continuing education and training for your workers. If you can’t afford a full-time human resources person, meet with an HR firm to create plans to build and manage your staff, and perform quarterly audits of your efforts.

Accounting

Many of the decisions you make regarding your business depend on accurate financial reports to guide you. Even if your accountant is accurate, if you have limited data, such as from an annual budget, general ledger or bank statements, you won’t be able to set optimal prices, manage your overhead and production costs and maintain adequate cash flow. Create a financial reporting system that includes profit-and-loss statements, an up-to-day balance sheet, receivables and payables reports, cash flow projections, debt tracking and budget variance analyses.

Technology

The more up-to-date your computers, software, phone systems, faxes and copy machines, the more efficient and productive your staff will be. Solicit input from your staff regarding what tools they feel will help them perform better. In addition to keeping current with technology, keep your employees trained in using what you provide them. From time to time, look at the equipment you use to make your product and determine if new machinery can help you manufacture quicker, with higher quality and at a lower cost than you are now.

Capital

One reason many small businesses fail is a lack of adequate capital. For example, you might have good sales but slow receivables. If you don’t have adequate cash reserves or access to credit to pay your bills while you wait for customers to pay invoices, you might lose access to your suppliers, have to cut back on marketing or take out costly loans to make payroll. Work with your financial manager to create internal controls that help you maintain adequate working capital.

References

About the Author

Sam Ashe-Edmunds has been writing and lecturing for more than 25 years, covering small business, personal finance, health, fitness, nutrition and sports. He has worked in the corporate and nonprofit arenas as a C-Suite executive, serving on several nonprofit boards. He in an internationally traveled sport science writer and lecturer. He has been published in print publications such as Entrepreneur, Tennis, SI for Kids, Professional Pet Sitter, the Chicago Tribune, South Florida Sun-Sentinel and Ventura County Star, and on websites such as Motley Fool, LIVESTRONG, Tyra Bank's Type F, USA Today, TheNest, JillianMichaels.com, GolfSmith and Zacks.